Solution to promote marketing activities of Hanoi beer – alcohol – beverage joint stock corporation (HABECO)

ACKNOWLEDGEMENT
Regarding completing this Senior Seminar, I would like to acknowledge the
following agencies for their support and assistance. Great deals appreciated go to the
facilitation from Foreign Trade University, especially the School of Economics &
International Business. The internship program really plays an important role in
providing senior year students with various opportunities to enter the corporate world.
I am also grateful of both Marketing Department and Market Department of
Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (HABECO), who warmly
supported me with their hospitality during the intern period. Not only did they arrange
my local work but also assisted me in the specialized field with various useful
information.
Above all, the special thank goes to my helpful supervisor, Mrs. Mai Thu Hien.
The enthusiastic guidance and support that she gave truly help finalize the progression
and smoothness of this Senior Seminar.

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TABLE CONTENTS

INTRODUCTION

1. The reason to choose a topic
In recent years, Vietnam's economy has always developed strongly, the demand for
production and consumption of goods has been increasing. Vietnam has truly become
a member of the global playing field by joining the WTO. Vietnam's export market
has been expanded. Vietnam also creates many favorable conditions for foreign
investment. Thanks to the advantage of cheap and abundant labor force, more open
policies, stable political and economic environment, more and more foreign investors
come to Vietnam as an attractive destination to build factories. Export manufacturing
enterprises. More and more Vietnamese enterprises are confident to enter the world

market. Vietnam's export turnover therefore keeps growing.
All of the above factors have a great impact on the birth of a series of businesses
and enterprises operating in the field of foreign trade. Many businesses with autonomy
in production and business have affirmed their foothold and the business performance
is really profitable. Today knowledge of business, including marketing, is an urgent
requirement of economic managers. So not only is it a profitable business but also a
business and a management art, it has a key place in the entire manufacturing process.
Thanks to good marketing activities help businesses always adapt to the market so as

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not to go bankrupt and improve efficiency constantly, making units always grow in
competition.
Marketing today has a huge role, holds an important position in our society. That's
why I chose the topic “Solution to promote marketing activities of Hanoi beer –
alcohol – beverage joint stock corporation (HABECO)“

2. Rationale
The existence and development of human society is closely associated with the
development of social production. The society’s production reflects its level of
development, or in other words, it expresses a society’s appearance and strength.
Along with its development, the production is growing and growing, Vietnam is in the
process of developing a socialist-oriented market economy. Developing a market
economy and integrating international economy are indispensable objectives. These
have opened up development opportunities for not only beer - alcohol - beverage
industry but are also the opportunities for all business sectors in the country.
Businesses have also taken advantages of these opportunities to develop as well as
expand the companies and to bring Vietnamese brand beyond the territorial borders.
Along with that continuous development and integration process, Hanoi Beer Alcohol - Beverage Joint Stock Corporation (HABECO) has made endless efforts to

improve product quality, innovate the designs, replace the obsolete, backward
equipment and machines with modern ones so as to create the best products for
consumers. Marketing activities to promote brand and products have a significant
impact on the existence and development of HABECO. Moreover, the effective
operation of the Corporation will bring a better life for employees and fulfill social
obligations. Therefore, the development and promotion of marketing activities is of
tremendous significance. With the knowledge gained at Foreign Trade University
along with the process of studying, investigating and collecting data, information at
HABECO, I chose the topic: “Solutions to promote marketing activities of Hanoi
Beer - Alcohol - Beverage Joint Stock Corporation (HABECO)” to write this Senior
Seminar.

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3. Research objective
On the basis of theoreticap overview of Marketing analyzing and evaluatiing
Marketing activities of Habeco, the objective of the research is to propose some
solution to promote Marketing activities of HABECO.

4. Object and Scope of the research
The object of the research is Marketing activities in enterprise.
Scope of the research is Marketing activities at HABECO in the period from 2017
to 2019.
The scope of analysis of HABECO's marketing activities includes: products,
prices, distribution and promotion.

5. Research method
This research is conducted based on economic theory, marketing management
theory, applying the research methods: Collecting data provided by employees at the

same time comparing, analyzing, collecting statistical data of enterprises to draw
conclusions.

6. The contents of the research
This research includes four chapters:
Chapter 1: Theoretical basis of Marketing. This chapter presents the rationale, the
reason to choose a topic, the objective of the research, the object and scope of the
research, research method and the contents of the research.
Chapter 2: Real situation of Marketing activities at HABECO. This chapter
discussed about the beer market in Vietnam, overview of HABECO company,
marketing activities of HABECO.
Chapter 3: Solution to promote marketing activities of HABECO. This chapter
indicates HABECO's development orientation in the future, proposed Solutions.
Chapter 4: Conclusion

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CHAPTER ONE: THEORETICAL BASIS OF MARKETING

1.1 Definition of marketing
Marketing is an abstract concept that has been defined in many different ways by
people due to different perceptions. It is defined in Dictionary.com as “the action or
business of promoting and selling products or services, including market research and
advertising”.
According to Philip Kotler (2006), “Marketing is a social and managerial process
by which individuals and groups obtain what they need and want through creating
and exchanging products and value with other”. Marketing is also defined by the
American Marketing Association as “the activity, set of institutions and processes for
creating, communicating, delivering, and exchanging offerings that have value for

customers, clients, partners, and society at large”.
Definition of J. Landrevie, D. Lindon, R. Laufer (1983): “Marketing is all the
means that businesses use to build, protect and develop their markets.”
Definition J. J Lambin (1997): “Marketing, which is advertising, is agitation, is
selling by pressure, that is, all of the sometimes offensive means of sales are used to
take over the market. existing school. Marketing is also the full range of analytical

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tools, estimation methods and market research methods used to develop an approach
to needs and requirements.”
Definition of Brifish Institue of Marketing (UK): “Marketing is the function of
managing the company in terms of the organization and management of all the
flexible operations from discovering and turning consumers' purchasing power into
real needs for a specific item to bring. the goods arrive at the final consumer,
guaranteeing the company the expected returns.”
Definition of Peter Drucker - modern American economist: "Marketing is all
business from the consumer's perspective."
The term developed from the original meaning which referred literally to going to
market with goods for sale. Marketing is the action or business activity that includes
market research and advertising, which involves presenting, promoting, finding out
what customers want, using that information to design products and services, and then
selling them effectively or in the best possible way. From a sales process
engineering perspective, marketing is “a set of processes that are interconnected and
interdependent with other functions of a business aimed at achieving customer interest
and satisfaction”. Marketing also refers to activities a company undertakes
to promote the buying or selling of its products or services which include advertising,
selling, and delivering products to consumers or other businesses. Some marketing is
done by affiliates on behalf of a company. Besides, marketing is the process of getting

potential clients or customers interested in your products and/or services. The key
word in this definition is process; marketing involves researching, promoting, selling,
and distributing your products or services. On the other hand, marketing is the process
of teaching consumers why they should choose your products or services over those of
your competitors, therefore, it truely is a form of persuasive communication.
1.2 The role of marketing
Today, marketing management is the subject of growth in benefits of all sizes
and in all types of organizations inside, outside the business sector and in every kind
of country.

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In the business field, marketing has come to the senses of companies at different
times. Marketing also plays a particularly important role for macroeconomic
management. But marketing has a huge role for microeconomic management. The
market is the object and important base of macro management. Through the market to
the State regulate production. To understand the market, you must research it through
the theory of marketing. Marketing is one of the important subjects to fulfill their
requirements for the reproduction of goods: productivity, quality and efficiency.
Today, companies cannot simply survive by doing their job well, but marketing
as a company's function, including identifying customer goals and the best way to
satisfy them. satisfy their needs and wants in a competitive and profitable way.
The function of marketing is the inherent effects derived from the objective
nature of marketing on the process of goods reproduction including the function of
adapting products to market demands. Marketing functions to make products always
adapt to market demand. It does not do the work of technicians, manufacturers but it
shows what the production engineering parts need to produce, how to produce it, how
to produce it, and when to give it. into the market. Carrying out this function,
marketing can acquire and coordinate the activities of technical departments, product

standardization.
Distribution function includes all activities to organize the optimal mobilization
of commodity products from the end of production to delivery to consumers.
Goods consumption can be acquired into two major types of operations: Control
over prices and point out the business and sales art.
Implementing this marketing function has many rich activities advertising
include sales promotion, product services, fair.
Coordinated marketing involves two main things. Firstly, the diverse functions
of marketing must be closely coordinated with each other and come from the
perspective of the customer..
Secondly, marketing needs to be well coordinated with other parts of the
company. Marketing does not work well if it is just a separate department, it works

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well if all employees in the company appreciate the efficiency that comes from
customer satisfaction.
1.3 Marketing Policy
Marketing policies are the guiding principles, rules, methods and procedures
established in association with marketing activities to support and promote the
implementation of the defined goals.
Marketing policy will have to show and guide managers in the field of sales
and marketing to know who will sell, what to sell, whom to sell, how much and how.
Marketing is an activity that includes many specific policies whose
implementation affects the success or failure of the implementation phase of the
strategy, including four major policies of product policy and policy. price (price),
promotion policy (promotion) and finally the distribution policy (place).
1.3.1 Product policy
Product policy is at the heart of Marketing both at a strategic and practical

level. It is closely related to the strategic planning, competition strategy and market
positioning. For marketing, product policy always plays the most important role,
considered the backbone of the business strategy of construction enterprises.
Figure 1.1. Product policy diagrams facilitate the realization of the marketing
strategy objectives of the enterprise.
By-products suitable
to the market
demand

The ability to
consume products

Profitability

Marketing strategy
goals

Product policy

(source: author)

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The content of product policy includes small policies: Product category policy,
the policy of consolidating and developing existing product reputation, new product
development policy, product brand policy, and packaging policies, complete policies
and improve product use characteristics in adapting to consumer needs, product life
cycles, researching new products.
1.3.2 Price policy

Price policy is an overall principle, method and solution that businesses impact
on prices to achieve a defined strategic goal.
In each strategic period, enterprises need to have specific policies for each item
including the main contents related to issues such as the price set (high, medium or
low), how to set prices (based on (in terms of cost, competitive status or product life
cycle), discounts and discounts, payment terms such as term, payment method, price
discrimination policy, etc. Specific pricing policies must be linked to the situation and
forecast of supply - demand, competition, the whole market as well as in each partial
market. Therefore, it is not excluded when the price policy in different markets is
different.
1.3.3 Promotion policy
The promotion policy is a comprehensive set of basic principles, methods and
solutions associated with product consumption activities to limit or eliminate all
obstacles in the consumer market, ensuring the implementation of strategic objectives.
comb defined.
Promotion policies include other specific policies such as advertising and
promotion policies: Advertising policies of a strategic business period pertain to the
product life cycle, market situation and forecast, business location, specific
advertising goals, etc.
In general, the advertising policy of an era involves choosing a form of
advertising such as product or business advertising; focused or unfocused advertising;
standalone or general advertising; advertise cable directly or indirectly; ... choose the
form of advertising such as television, tables, newspapers or status shows, movies,

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customer conferences; ... As well as choosing the means of advertising, funds for
advertising , ... Orientation solutions for selecting specific decisions in different
markets may not be the same.

Promotion policy of a strategic period usually refers to forms of promotion
such as contest vouchers, gift giving, discounts or sales, time and time, customer
service organization (hiring commercial companies). trade? or self-made?) .. In
addition, businesses can also build advocacy policies in accordance with specific
specific market markets.
In the above series of policies, it is necessary to clearly identify which
promotion solutions are leading and suitable for the general marketing strategy.
1.3.4 Distribution policy
In each specific strategic period, developing distribution policies is an
important content of marketing policy. Does the distribution policy usually cover
things like identifying direct or indirect distribution channels? What is the main
distribution channel? System of points of sale? Criteria for geographical selection,
commercial representation, sellers? Warehouse and shipping conditions.
Product launches to market. In particular, the sales network is a collection of
channels with the participation of different entities with different strengths and
prestige to successfully bring goods from manufacturing enterprises to customers. The
design and management of enterprises' new commodity sale channels must ensure the
following requirements: Consistent with the nature of the product, creating the most
favorable conditions for customers to access and find products easily, considering the
distribution channel of competitors.
Privileged distribution has the following characteristics: To limit the number of
intermediaries, intermediaries not selling goods of competitors. Businesses hope
customers have enough knowledge and dynamism to buy products. Enhance the
impression of the product and have a high profit. Choose a location to sell products.

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Selective distribution: is a method in which the number of manufacturing
businesses is greater than the number of distributors and manufacturing firms costing

less to control sales locations.
Widely distributed: Businesses will find many sales locations to facilitate
customers to find products but will lose control of the system.
Marketing channel function include: Gather information to make policy and
facilitate exchange, disseminate information about business products and new
products, find out and inform with prospects, divide gift packages and divide sales
categories, mobilize and divide money to pay expenses, take risks.
The role of manufacturer agent in distribution channel: A small business with
certain types of products and no sales force, a business wants to add an entirely new or
possibly unrelated product to its existing product line. But the sales team of the
business has no experience with new products or in new markets, a business wants to
enter a new market but their sales team is not developed enough to be able to handle
it.
1.4 Measures to promote marketing activities in enterprises
The marketing solutions are mainly aimed at promoting the marketing of
products of businesses in the market economy.
In recent market economy as well as in commercial business, goods
consumption occupies a key position and it plays a very important role.
The consumption of goods not only increases the turnover and profit of the
enterprise, but also affirms that the business direction and policies of the enterprise are
right. The enterprise has identified the needs of customers and contributed to
satisfying that demand, through which its products have affirmed its advantages and
foothold in consumption. All of the above are evaluated, checked and confirmed by
the product consumption of enterprises in business activities.
Set marketing goals. Every Company is pursuing certain goals. Marketing
goals are usually oriented according to organizational goals, in case the Company is
completely marketing oriented, these two target groups are identical. Marketing goals

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are often evaluated as performance standards or as tasks that must be achieved at a
given time. These goals provide the implementation framework for the marketing
strategy. Marketing objectives are established from the analysis of market capabilities
and evaluation of the Company's capabilities. These analyzes are based on data on
competitive market products and marketing environment, thereby drawing out the
potentials of the market to exploit and selecting suitable Marketing target of the
Company.
Target market selection. Researching and selecting the right target market for
the Company must be conducted based on careful analysis of market and customer
data. This is the job of identifying the needs of customers and selecting the groups or
segments that the Company will serve with each of its products. The Company may
select, decide to enter one or more segments of the market. These market segments
can be divided according to different criteria, in which the elements of the macro
environment have many effects on dividing the market into smaller market segments.
Thus, to choose the target market for the Company requires careful research and
analysis of factors of the macro environment, the market and the micro environment.
These factors form the basis for segmenting and evaluating different market segments,
the Company will have to decide how much and which segments to serve.
Develop strategic directions. Before setting up marketing-mix strategies for
products in the target market, the Company must set strategic directions for the
products to be reached in the target market. These orientations provide specific
directions for the marketing - mix strategy. The development of strategic directions
must be based on the target market in order to effectively position the Company's
products on the market.
Planning a marketing - mix strategy. The content of this strategy includes 4
basic policies. The Company must rely on initial analysis of the marketing
environment, the customer market and the strategic goals that need to be implemented
in accordance with the characteristics of its target market to establish a four-part

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division. Consolidation to satisfy the target market, from which to achieve the goals of
the organization.
Develop marketing

-mix programs The marketing strategy must be

implemented into marketing programs, the new strategy only shows the main features
of marketing in order to achieve the goals. Therefore, it is necessary to develop
operational programs to implement marketing -mix strategies.
Marketing-mix is the concretization of marketing strategy with marketing
variables planned in the target market.
Therefore, in order to establish a thoughtful, effective and suitable marketingmix strategy, the Company must clarify the market, micro and macro environment
factors. from the Company, from which to drill down, analyze fundamental issues,
weaknesses and strengths, threats with sound grounds for goal setting, strategic and
planning directions, and design an effective marketing strategy for the target market
product with specific operational programs.

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CHAPTER TWO: REAL SITUATION OF MARKETING ACTIVITIES AT
HABECO
2.1 Beer market in Vietnam
While the beer consumption market in many other countries has reached a
saturation point, the Vietnamese market continues to grow rapidly, ranking among the
top in the world.
According to Euromonitor, in 2010, total beer consumption in Vietnam reached

about 2.4 billion liters. With the Vietnamese population at the time estimated at 88.5
million, on average, each Vietnamese in 2010 drank about 27.1 liters of beer.
By the end of 2018, after nearly a decade, while Vietnam's population reached
96.9 million people (an increase of 9.5% compared to 2010), the country's beer
consumption increased by 62%. Specifically, this analysis report on the beverage
industry of FPT Securities (FPTS) considers that Vietnam is one of the largest beer
markets in the world.
Specifically, in 2017, total domestic beer consumption reached 4 billion liters,
accounting for 2.1% of total global beer production, and ranked 10th in the world,
ranked third in Asia (after China). and Japan).
In 2018, the domestic beer industry has about 110 manufacturing enterprises
with an estimated production volume of 4.3 billion liters, and consumption volume is
estimated to reach 4.2 billion liters of beer, an equivalent increase compared to with
2017.
Thus, on average, in 2018, each Vietnamese has consumed nearly 43.3 liters of
beer, even if only counting people of working age (15-60 years), on average, each
person belongs to the age group. This has consumed up to 86.6 liters of beer in the
past year.
Also according to this report, in the period from 2007 to 2017, the compound
annual growth rate (CAGR) of Vietnam's beer market reached 8.3%, a very high level

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compared to other markets. This led to the size of the Vietnamese market also
increased 15 levels, from 25 to 10th in the world.
A recent study published in The Lancet also said that Vietnam, India and Japan
are the three countries with the fastest increase in alcohol consumption during 20102017.
Compared to 2010, in 2017, Vietnam's alcohol consumption increased by
nearly 90%. This increase of Vietnam ranks first in the world, and double the country

ranked second - India, and 16 times more than the United States.
A report by Ban Viet Securities Joint Stock Company (VCSC) shows that more
than 90% of Vietnam's beer market share is in the hands of four producers Sabeco,
Habeco, Heineken and Carlsberg. While the major international brands joining later
have not found a foothold as Sapporo, Budweiser.
Figure 2.1. Beer consumption market share in 2019 in Vietnam

other

(source:FPTS)

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2.2 Overview of HABECO company
2.2.1

Formation and development history

Over nearly 130 years of history with more than half a century of recovery and
development, up to now, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation
(HABECO) has become one of the leading enterprises of Vietnam Beverage Industry.
Many famous product lines those have made up HABECO brand may be
mentioned as Truc Bach Beer, Hanoi Beer Premium, Hanoi Bottled Beer and Hanoi
Canned Beer, Hanoi Draft Beer, etc. And recently, the pair of products for the young Hanoi Bold & Hanoi Light - has won the trust of numerous consumers for both quality
and style, conquered beer connoisseurs not only in the country but also even the
foreigners.
HABECO underwent over 100 years of construction, development and growth.
Consequently, it is quite a famous and long-standing brand in the Beverage Industry of
Vietnam. Currently, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation has

built a number of breweries in Me Linh, Hung Yen, etc. The precursor of HABECO
today used to be the Hommel Beer Factory, which was established in 1890 by the
French with a small scale of thirty employees for the purpose of producing products in
order to serve the French expeditionary force. By 1935, Hommel Beer Factory and
other breweries in Indochina merged into the Indochina Beer Company.
In 1954, the northern Vietnam was completely liberated. Before the retreat, the
French military had dismantled the equipment, burned all important documents so as
to make the factory paralyzed. However, after peace was restored in 1957, according
to the Government’s economic recovery policy, the factory was restored and began
operational with the name “Hanoi Brewery”.
Only one year later, on May 1st, 1958, the first batch of test beer was successfully
carried out by Mr. Vu Van Boc - a skilled worker of the old Hommel Beer Factory combined with the help of beer experts from Czech. And on August 15 th of the same

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year, the first beer bottle of Vietnam branded “Truc Bach” was born, marking the
mastery of technology and being a considerably important turning point in the
brewing industry of our country. It was the very first product of Hanoi Brewery to be
deeply imprinted in the sentiments of many workers’ generations. And so on, August
15th is annually chosen as the Traditional Day of Hanoi Beer. Upholding the dynamic
and creative tradition, HABECO staff have constantly cultivated and raised the
qualifications so as to meet the consumers needs and help the company to grow as
well as to increase its production capacity.
In 1960, “Huu Nghi” Beer and Draft Beer were “born”. The factory produced 15
million liters per year. Then in 1970, the amount was raised to 20 million liters per
year. In 1978, the factory was assisted by the East Germans to rennovate the cooking
house and then in 1983, the combined cooking house was put into use, which
increased the capacity to 30 million liters per year. In 1991, Hanoi Canned Beer
appeared.

In 1993, Hanoi Brewery changed its operating model and changed its name to
Hanoi Beer Company. In 1995, the company sped up the equipment renewal process,
invested in new equipment to replace the old ones with a view to increasing the
capacity to 50 million liters per year.
In 2003, the company continued to be transformed into a State Corporation, named
Hanoi Beer - Alcohol - Beverage Corporation, which was established on the basis of
restructuring Hanoi Beer Company and a number of member units of Vietnam Beer Alcohol - Beverage Corporation.
In 2004, an in-depth technology renovation project which had increased the
company’s capacity to 100 million liters per year, was completed and put into use,
meeting the increasing demands of consumers in both quantity and quality. Then in
2006, the second factory of HABECO was started construction in Me Linh district,
Vinh Phuc province (now is Hanoi). The event that marked a turning point in

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expanding international cooperation relation was HABECO signed the strategic
cooperation with Carlsberg Beer Group in 2007.
From July 1st, 2008, Hanoi Beer - Alcohol - Beverage Corporation became Hanoi
Beer - Alcohol - Beverage Joint Stock Corporation (HABECO) with the form of
equitization, transforming its operating model into a joint stock company with fifty
years of construction and development. Up to now, the Corporation has invested in
technological innovation and has purchased almost all modern equipment of Western
Europe.
During 2010, the completion of an investment project to build a Brewery with a
capacity of 200 million liters per year in Me Linh district, Hanoi, along with the most
modern synchronous equipment system in Southeast Asia helped the Corporation
reach the productivity of nearly 400 million liters of beer per year. HABECO has now
become one of the two largest brewing corporations in Vietnam.
Also in that year, Truc Bach Beer products were restored. In order to improve

competitiveness and meet the needs of consumers, in the new development period
from 2013 to 2018, HABECO continued to invest in improving productivity, product
quality, changing designs and packaging, and diversifying products.
In May 2019, HABECO launched a new identity logo with the slogan: “Sức bật
Việt Nam”. The new logo with the word “HABECO” in bold letters attached to the
core values of the corporation:
H: “Hội nhập nhưng vẫn riêng một bản sắc” (Integration but still an identity)
A: “Am hiểu nhưng không ngừng nghiên cứu” (Knowledgeable butconstantly
researching)
B: “Bền bỉ nhưng sẵn sàng bứt phá” (Persistent but willing to break out)
E: “Ép nỗ lực để không ngừng phát triển” (Pressing efforts to constantly grow)
C: “Chung ước mơ để cùng nhau đi tới” (Share dream to go together)
O: “Ôm chí lớn cho một tầm cao mới” (Big will for a new level)
As a result, Hanoi Beer has increasingly affirmed its position in the market,
developed market share and met the domestic consumption needs.

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2.2.2 Organizational structure and business production sectors
Up to now, the Corporation plays the role of the Parent Company with many
subsidiaries and affiliates stretching from Central Quang Binh to the Northern
provinces and cities.

FIGURE 2.2 HANOI BEER ALCOHOL AND BEVERAGE JOINT STOCK
CORPORATION

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(Source: Profile Habeco capacity)
The Corporation is managed by the Board of Directors and is executived by the
General Director. The Board of Directors is the direct representative of the State
owner at the Corporation, having full power on behalf of the company to decide all
issues related to the identification and implementation of objectives, tasks and
interests of the Corporation. Corporations, except for matters falling under their
respective competence and responsibilities, are decentralized to other agencies and
organizations that represent the owners.
General Director appointed, dismissed, rewarded or disciplined by the Minister
of Industry at the proposal of the Board of Directors. The General Director is the legal
representative of the Corporation and is responsible to the Managing Board, the

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Minister of Industry and the law for the management of the Corporation's activities.
The General Director has the highest executive authority in the Corporation.
Deputy General Director is the person who assisting the General Director in
managing one or a number of activities of the Corporation according to the
assignment or authorization of the General Director and taking responsibility before
the General Director and the law for the tasks assigned by the General Director. public
or authorized.
In addition, there are other enterprises and specialized departments: Office of
Administrative Council, office, Division of Labor Organization, Division of Financial
Accounting, Division of Market, Division of Planning, Division of Raw Material and
Supplies, Division of Raw Material and Supplies, Division of Investment, Division of
Technical, Division of Quality Management, NGK Technology Institute of Beer and
Alcohol, Board ISO, Hanoi Beer Factory - Me Linh, Hanoi Beer Factory - Hoang Hoa
Tham.
Parent company consists of 16 subsidiaries: Habeco Co., Ltd, Hanoi – Quang Tri

Beer joint stock company, Hanoi beer alcohol beverages investment development joint
stock company, BALPAC, Hai Phong HABECO joint stock company, Hanoi – Thai
Binh Beer joint stock company, Hanoi – Hai Phong Beer joint stock company.
HABECO – Trading., JSC, Hanoi – Thanh Hoa Beer joint stock company, Hanoi –
Hai Duong Beer joint stock company, Hanoi Liquor joint stock company, Hanoi –
Hong Ha Beer joint stock company, Hnibe., JSC, Hanoi – Nam Dinh Beer joint stock
company, Hanoi – Nghe An Beer joint stock company, Hanoi – Quang Binh Beer joint
stock company
06 Associates, joint ventures include: Harec trade., JSC, HABECO Packing joint
stock company, Hanoi – Kim Bai Beer joint stock company, HABECO – Trans., JSC,
Hai Phong Sanmiguel Yamamura glass Co.,Ltd, HABECO investment and
development joint stock company.
The parent company is allowed to deal in the following main professions:
Producing and trading all kinds of beer, wine, beverage, alcohol and packaging;

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Importing and exporting all kinds of products such as beer, wine, soft drinks,
alcohol, packaging, raw materials, aromas, essence for the production of beer,
specialized equipment of Beer, alcohol and beverage industry;
Investment and consulting services, research, training, technology transfer, design,
manufacturing, construction and installation of works specialized for beer, alcohol and
beverage;
Service of science and technology, investment consultancy, creating investment
capital, lending capital, investing capital in subsidiaries and associated companies;
Trade in hotels, tourism, fairs, advertising information, organizing material zones,
real estate business and other professions in accordance with law.

2.2.3 Product line

HABECO branded products have become a part of Hanoi culinary culture, trusted
and loved by domestic and foreign consumers. Main product lines of the company are
shown in the table below
Table 2.1. Product line
No
1

Product's name
Hanoi beer - bottle

2

Hanoi beer - can

3

Premium Hanoi Beer

4

Premium Hanoi Beer - can

5

Truc Bach beer - bottle

6

Truc Bach beer - can

7

Hanoi beer green label

Description
Capacity: 330ml
Plastic box: 24 bottles
alcohol concentration: 4.9 %
Capacity: 330ml
Carton box: 24 bottles
alcohol concentration: 4,6 %
Capacity: 330ml
Plastic box: 24 bottles
alcohol concentration: 4.9 %
Capacity: 330ml
Carton box: 24 cans
alcohol concentration: 4,9%
Capacity: 330ml
Plastic box: 24 bottles
alcohol concentration: 5.1%
Capacity: 330ml
Carton box: 24 cans
alcohol concentration: 5.1%
Capacity: 450ml

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8

Hanoi beer green label - can

9

Hanoi beer bold

10

Hanoi beer light

11

UniAqua bottled water

Plastic box: 24 bottles
alcohol concentration: 4,2%
Capacity: 330ml
Carton box: 24 cans
alcohol concentration: 4,3 %
Capacity: 330ml
Plastic box: 24 bottles
alcohol concentration: 5.1%
Capacity: 330ml
Plastic box: 24 bottles
alcohol concentration: 5.1%
Capacity: 350ml and 500ml
Carton box: 24 bottles
(Source: />
2.2.4 HABECO's business results in the last three years
No

Targets

I
1.1
1.2

In term of production
Types of beer
Uniaqua bottled water
(million liters)
Financial situation

II
2.1

Unit

million liters
million liters

The total value of
assets

Billion dong

2.2
2.3

Net sales

Profits from business
activities

Billion dong
Billion dong

2.4

Profit before tax

Billion dong

2.5

Profit after tax

Billion dong

2017

483,4
2,9

2018

2019

Difference in
2017-2018

Difference
in 2018 2019

426,1
3,267

398,5
2,58

-11%
13,31%

-6,5%
-20,9%

7.195,5

7.411

6.166,7

2,99%

7.560,5

7.065,7

7.086,8

-6,54%

894,1

613,1

590,6

-31,43%

839,3

637

613,1

-24,10%

657,7

517,8

501,7

-21,27%

-16,79%

-3,67%
-3,74%
-3,11%

Table 2.1 Report of HABECO's business results in 3 years 2017, 2018, 2019
Based on the report of business results in the three years of 2017, 2018, 2019 of
HABECO, in 2018, the production of beer reached 426.1 million liters, only 89% over
the same period. in 2017 and only reached 85.9% of the year plan.

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However, the production of Uniaqua bottled water reached 3,267 million liters,
equaling to 113.31% (up 13.31%) compared to the same period in 2017 and reaching
88.3% of the year plan. The sales of main products reached 7,558.0 billion VND,
equaling 96.1% over the same period and reaching 85% of the year plan. Profit before
tax reached VND 637.0 billion, equal to 75.89% over the same period and reached
63.6% of the year plan.
Some main reasons that directly affect the results of Tong's production and
business targets. HABECO's products are facing stiff competition in the Northern and
Northern Central markets. SABECO grew by Saigon Lager and 333 products with a
growth rate of 32%; Heineken Vietnam grew with Tiger products with a growth rate of
71%.
Raw materials for beer production, such as malt, rice, houblon, cans, have
increased prices, leading to higher production costs.
State policies such as: policies restricting the use of alcohol and beer; excise
tax rate increased by 5%, from 60% to 65% in 2018; changing the way of calculating
wages as a basis for insurance premiums, increases input costs, while it is difficult for
the unit to increase selling prices.
In 2019, all evaluation indicators have a decrease compared to 2018, a
decrease from 3.67% to 20.9%
Some of the reasons given for the above reduction are as follows. Beer
industry growth has slowed in recent years. Competition among businesses in the

industry is getting fiercer. Many big brands in the Southern market have invested and
developed strongly in the Northern market, which is the main market of HABECO.
These are competitors with strong financial resources, investment in manufacturing
plants with large capacity and scale. In addition, a number of domestic and foreign
enterprises such as Masan, Budweiser ... participate in the domestic beer industry,
making the competition even more fierce.
In addition to the locally produced beer products, the beer market also has
many more diverse, imported products (Corona, Leffe, Chimay..), while the consumer

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psychology of a part of people Consumers are foreign buyers, preferring products with
big brands that have put a lot of pressure on domestic businesses.
Along with the development of social life, the consumption trend of the
people is gradually shifting from the affordable, mid-end to high-end and high-end
segments.
The private enterprises are more active and flexible in production and
business activities, more active in restructuring and rearranging enterprises. In
addition, due to the collection of special consumption tax arrears as well as the
division of the Development Investment Fund at the request of the State Audit,
HABECO's resources have been limited compared to other enterprises in the
industry. .
Regarding advertising, communication, brand development: In recent years,
the activities of advertising, communication, product introduction to consumers of
HABECO are limited, the number of export frequency Currently, there is very little
publicity on the media, forms of promotion and communication are not diverse and
plentiful.
About the product: The color of the old product code, little change, creating
an old feeling for consumers. Besides, HABECO's products are mainly popular

products, focusing on 450ml Hanoi beer bottles, draft beer. HABECO's sales volume
is concentrated up to 90% in the ordinary segment, this is the segment with low profit
margin on the product. Along with the development of the beer industry, this
traditional product has gradually failed to compete with many new products from
competitors in the industry.
2.3 Marketing activities of HABECO Company
2.3.1

Marketing strategy of HABECO
The problem of maintaining market share and developing a brand is only

successful with businesses with good products, good services and superior sales
teams. Grasping that, the Hanoi Beer - Alcohol - Beverage Joint Stock Corporation
(HABECO) has been continuously improving product quality, drastically in marketing

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